california enacted an OTP tax- "other tobacco products" which collected a 65% tax at the wholesale rack for customers of manufacturers and distributors who reside in Cali...
i made a bushel selling "retail" at a 10% GM (which means i didn't retain records from customers purchases) to stores in Cali... I figured what they were doing, but...... their business, not mine. a box of cigars are 'keystoned' for retail, meaning if you purchase from manufacturer for $100, it retails for $200... selling individual as opposed to boxes is greater than keystone... the cali buyers buying the same box of cigars i purchased from manufacturer for $102 (my state has a 2% tax on OTP) they had a minimum of $170 invested. buying from me put their costs into the >$120 range..... i aimed for volume and outfitting smaller cigar shops who didn't move enough product to get to the more exclusive labels... the cali buyers took advantage of that. their taking advantage made me some bucks... it was good all around, except for the state and a bunch of clowns in their legislation who thought they were clever- they actually harmed their state greatly.
most locally owned restaurants around here are keystone operations- running a 50%GM on all the products they move at a minimum. it goes up from there... which brings me to something that ought to be in the "things i hate" thread in the BigVII board:
I hate restaurants that ENTER business thinking they're 'exclusive' or 'high end'... that is something EARNED- not 'declared'. but that isn't how it works down here- these places open with $35 plates of pasta with overdone seafood covered in sauce from a jar, and well dressed servers in a decent atmosphere, and think they've arrived... meanwhile, there are high school kids cooking in the kitchen.